COMMISSION IMPLEMENTING REGULATION (EU) 2019/2242

of 16 December 2019

specifying the technical items of data sets, establishing the technical formats and specifying the detailed arrangements and content of the quality reports on the organisation of a sample survey in the income and living conditions domain pursuant to Regulation (EU) 2019/1700 of the European Parliament and of the Council

(Text with EEA relevance)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2019/1700 of the European Parliament and of the Council of 10 October 2019 establishing a common framework for European statistics relating to persons and households, based on data at individual level collected from samples, amending Regulations (EC) No 808/2004, (EC) No 452/2008 and (EC) No 1338/2008 of the European Parliament and of the Council, and repealing Regulation (EC) No 1177/2003 of the European Parliament and of the Council and Council Regulation (EC) No 577/98 (1), and in particular Article 7(1), Article 8(3) and Article 13(6) thereof,

Whereas:

(1) In order to ensure the accurate implementation of the sample survey as regards the income and living conditions domain, EU-SILC, the Commission should specify the technical items of the data set, the technical formats for transmission of information and the detailed arrangements and content of the quality reports.

(2) The EU-SILC survey is a key instrument for providing information required by the European Semester and the European Pillar of Social Rights, in particular for income distribution, poverty and social exclusion, as well as various related living conditions and poverty EU policies, such as on child poverty, access to health care and other services, housing, over indebtedness and quality of life. It is also the main source of data for microsimulation purposes and flash estimates of income distribution and poverty rates.

(3) The international comparability of national and regional statistics on income and living conditions requires the use of statistical classifications for the territorial units, education, occupation and economic sector that are compatible with the NUTS (2), ISCED (3), ISCO (4) and NACE (5) classifications. The recommendations made by the United Nations in the Canberra Group Handbook on Household Income Statistics should also be taken into account.

(4) The measures provided for in this Regulation are in accordance with the opinion of the European Statistical System Committee,

HAS ADOPTED THIS REGULATION:

Article 1

Subject matter

This Regulation specifies the technical items of the data set, the technical formats for the transmission of information from Member States to the Commission (Eurostat) and the arrangements for transmission and the content of the quality reports in the income and living conditions domain (EU-SILC).

Article 2

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) ‘fieldwork period’ means the period during which data is collected from respondents;

(2) ‘reference period’ means the period to which a particular item of information relates;

(3) ‘cross-sectional ’ means, in reference to data, those pertaining to a particular time or a given reference period;

(4) ‘longitudinal’ means, in reference to data, those pertaining to given subsequent reference periods, observed yearly over a certain length of time with respect to the same observation unit;

(5) ‘sample person’ means a member of a private household in the initial sample who is at least 16 years old at the end of the income reference period;

(6) ‘sample household’ means a private household containing at least one sample person;

(7) ‘selected respondent model’ means a mode of sampling based on individuals where the household to which the selected respondent belongs is the sample household and the selected respondent is the sample person;

(8) ‘age’ of a person means the age in completed years at the end of income reference period,

(9) ‘current household member’ means a member of a sample household at the time of data collection or compilation;

(10) ‘co-resident’ means a current household member other than a sample person;

(11) ‘household split’ means a situation where the sample persons living in a sample household at the time of wave x, live, at the time of wave x+1, in more than one private household within the national territory included in the target population; when a household split occurs, there will be only one initial household and one or more split-off households;

(12) ‘initial household’ means a sample household which has undergone a household split and where any sample person who lived in that household at the time of wave x still lives at the same address at the time of wave x+1. If more than one sample person lived in the household at the time of the wave x and still live in that address at the time of the wave x+1 but in different households, the initial household is the household of the sample person still living at the initial address who has the lowest person number referred to in Annex III. If at the time of wave x+1 no sample person lives at the address of wave x, then the household of the sample person who had the lowest person number at the time of wave x is the initial household. If this person is no longer alive or no longer living in a private household within the national territory of the target population, the initial household is the household of the sample person with the next lowest person number. For the selected respondent model ‘initial household’ means the household of the selected respondent;

(13) ‘split-off household’ means a household composed of members of the household that has undergone a household split, other than the initial household;

(14) ‘fusion household’ means all sample persons from different sample households from the previous wave who join together to form a new household;

(15) ‘modelling’ means generating information that is missing in the data set by making use of substantive relationships with information from outside the data set;

(16) ‘collection unit’ means a household or person with certain characteristics to which or whom the information collected pertains;

(17) ‘household respondent’ means the person from whom household-level information is obtained;

(18) ‘rotational panel design’ means sample selection based on a fixed number of subsamples, each of which is representative of the target population at the time of its selection. Each year, one subsample rotates out and a new one is drawn as a substitute;

(19) ‘wave’ means a year in which a subsample is participating in the survey;

(20) ‘panel’ means a subsample observed over more than one year.

Article 3

Statistical concepts and description of variables

1. Member States shall use the statistical concepts laid down in Annex I.

2. The technical characteristics of variables shall be those laid down in Annex II and refer to:

(a) the variable’s identifier;

(b) the variable’s name;

(d) the collection unit;

(e) the mode of collection;

(f) the reference period.

3. The variables for which missing values are not allowed and for which data shall be imputed shall be those identified in the Annex II.

4. All household and personal data shall be linkable for the whole duration of the panel, both for cross-sectional and for longitudinal information.

Article 4

Characteristics of the statistical populations and observation units and the rules on respondents

1. The target population in the income and living conditions domain shall be private households and all persons composing these households in the territory of the Member State.

2. Information at household and person level shall be collected or compiled for all household members, including all sample persons and co-residents as specified in Annex II. In the selected respondent model, data shall be collected through individual interviews only from selected respondents aged 16 or over. For a sample person, starting from the second wave, information shall be obtained on whether that person remained at the same address or moved to a different address from one year to the next, as well as on the new contact information in case of change.

3. Information on household members from the previous wave who are no longer household members shall be collected to establish whether those persons have died or whether they have moved abroad or to an institution or to a different address within the national territory.

4. A household shall be included for the collection or compilation of detailed information if it contains at least one sample person.

5. In both the initial and the split-off household, the full information required for current household members and the full information at household level shall be collected or compiled.

6. At least three attempts shall be made to contact a household or person before it is considered that it, he or she is non-responding, unless there are conclusive reasons why this cannot be done (such as a definite refusal to cooperate or circumstances endangering the interviewer’s safety).

7. Where proxy interviews are allowed, the proxy rate shall be kept as limited as possible with regard to:

(a) the income personal variables;

(b) any variables required for at least one household member aged 16 and over.

If a proxy interview is conducted, the identification of the person who has provided the information shall be recorded.

8. Detailed characteristics of the identification of households and persons shall be those set out in Annex III.

Article 5

Reference periods

1. The income reference period shall be a 12-month period, such as the previous calendar or tax year.

2. The reference periods for variables not referring to income shall be those specified in Annex II.

Article 6

Detailed sample characteristics

1. Only Member States that used the selected respondent model before 19 January 2020 shall be authorised to continue using the method over the following years.

2. Controlled substitutions of sample households or persons may be allowed only in the first year of each panel, if the response rate falls below 60 % and one of the following situations arises:

(a) the sample household or person is not contacted because it/she/he cannot be located or is inaccessible;

(b) the sample household or person is contacted, but the interview is not completed because the household or person refuses to cooperate, the whole household is temporarily away, the household or person is unable to respond or there are circumstances endangering the interviewer’s safety.

3. The set of sample households or persons for substitution shall be defined prior to data collection. There shall be no substitution with households or persons not belonging to that set.

4. Procedures shall be followed to ensure that the process of substitution is controlled to the maximum extent possible. Such procedures shall include using a design which ensures that the selected substitutes closely match the households or persons they replace in terms of their significant characteristics.

5. Small parts of a national territory amounting to no more than 2 % of the national population may be excluded from EU-SILC, as may French overseas departments and territories. Both exclusions shall not take place simultaneously.

6. If subpopulations covered by the survey are significantly under-represented in the achieved sample owing to specific non-response or attrition, Member States shall take measures such as oversampling, calibration or applying any relevant method to correct for the resulting bias. The methods used, their impact and any drawbacks shall be explained and assessed in the quality report.

Article 7

Data gathering periods and methods

1. For data directly provided by respondents, the fieldwork period shall be as close as possible to the income reference period, to minimise time lag between income and current variables.

2. The interval between the collection or compilation of data concerning a given household or person for successive waves shall be kept as close as possible to 12 months.

3. Data provided directly by respondents shall be collected by computer-assisted methods, including computer-assisted personal interview (CAPI), computer-assisted telephone interview (CATI) and computer-assisted web-interview (CAWI). Justification shall be provided for any exceptions.

Article 8

Rules on follow-up

1. Sample persons, co-residents and sample households shall be observed for the purpose of the survey over the duration of the panel in accordance with the rules set out in paragraphs 2 to 7.

2. Sample persons moving to a private household within the national territory covered in the survey shall be followed to the location of the household.

3. Sample persons who are temporarily away from the household but who are still considered members of the household shall be covered by the survey in that household.

4. Sample persons who are no longer members of a private household, or who have moved outside the national territory covered in the survey or to an institution, shall be dropped from the survey.

5. Co-residents living in a household containing at least one sample person shall be followed.

6. Co-residents living in a household not containing any sample person shall be dropped from the survey.

7. A sample household shall be dropped from the survey in the following situations:

(a) the household was not enumerated for a single year due to either of the following reasons:

(1) the address was impossible to locate;

(2) the address was non-residential or unoccupied;

(3) there was no information on what happened to the household (the household was lost);

(4) the household refused to cooperate;

(b) the household was not contacted in the first year of the panel or in two consecutive years of the panel due to either of the following reasons:

(1) it was not possible to access the address;

(2) the whole household was temporarily away or unable to respond due to incapacity or illness or for other serious reasons.

Article 9

Common standards for data editing, imputation, weighting and estimation

1. Imputation, modelling or weighting shall be applied to the data where necessary.

2. Where non-response to income variables at component level results in missing data, appropriate methods of statistical imputation shall be applied.

3. Where any net income variable at component level is collected directly, appropriate methods of statistical imputation or modelling, or both, shall be applied to obtain the required target gross variables and vice versa.

4. Where non-response to an individual questionnaire occurs within a sample household, appropriate statistical methods for statistical weighting or imputation shall be used to estimate the total income of the household.

5. The procedure applied to the data shall preserve the variation in and the correlation between variables. Methods that incorporate ‘error components’ into the imputed values shall be preferable to those that simply impute a predicted value.

6. Methods which take into account the correlation structure (or other characteristics of the joint distribution of the variables) shall be preferable to the marginal or univariate approach.

Article 10

Formats for transmitting information

1. Member States shall transmit the data that comply with the characteristics of the variables as specified in Annex II in electronic form to the Commission (Eurostat).

2. Member States shall transmit the data to the Commission (Eurostat) in the form of micro-data files (including appropriate weights), using the statistical data and metadata exchange standard through the single entry point to allow the Commission (Eurostat) to retrieve the data by electronic means. The data must have been fully checked and edited.

3. Member States shall annually transmit all the subsamples belonging to the rotational design of the given year, regardless of their duration. All the subsamples shall be transmitted together.

4. Member States shall provide the metadata necessary for the purpose of microsimulation in accordance with country specificities and in conformity with an appropriate classification for the variables on social benefits, using the exchange standards referred to in paragraph 2.

Article 11

Quality reporting

1. Member States shall apply quality evaluation criteria and the detailed content of the quality report as laid down in Annex IV.

2. Member States shall transmit the quality-related reference metadata required by this Regulation to the Commission (Eurostat), using the statistical data and metadata exchange standard. They shall send the metadata through the single entry point so that the Commission (Eurostat) can retrieve the data by electronic means.

Article 12

This Regulation shall enter into force on the twentieth day following that of its publication in the

Official Journal of the European Union

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 16 December 2019.

For the Commission

The President

Ursula VON DER LEYEN

(1)

OJ L 261 I, 14.10.2019, p. 1

(2) Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) (

OJ L 154, 21.6.2003, p. 1

(3) International Standard Classification of Education 2011, http://uis.unesco.org/sites/default/files/documents/international-standard-classification-of-education-isced-2011-en.pdf (available in English and French).

(4) Commission Recommendation of 29 October 2009 on the use of the International Standard Classification of Occupations (ISCO-08) (

OJ L 292, 10.11.2009, p. 31

(5) Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2 and amending Council Regulation (EEC) No 3037/90 as well as certain EC Regulations on specific statistical domains (

OJ L 393, 30.12.2006, p. 1

ANNEX I

Definitions of statistical concepts

1. GROSS INCOME COMPONENTS

1.1. Employee income

Employee income is defined as the total remuneration, in cash or in kind, payable by an employer to an employee in return for work done by the latter during the income reference period.

Employee income is broken down into:

(1) Gross cash or near-cash employee income (PY010G);

(2) Gross non-cash employee income (PY020G);

(3) Employers’ social insurance contributions (PY030G).

1.1.1. Gross cash or near-cash employee income (PY010G)

It refers to the monetary component of the compensation of employees in cash payable by an employer to an employee. It includes the value of any social contributions and income taxes payable by an employee or by the employer on behalf of the employee to social insurance schemes or tax authorities.

Gross cash or near-cash employee income includes the followings items:

— wages and salaries paid in cash for time worked or work done in main and any secondary or casual job(s),

— remuneration for time not worked (e.g. holiday payments),

— higher rates of pay for overtime,

— fees paid to directors of incorporated enterprises,

— piece rate payments,

— payments for fostering children,

— commissions, tips and gratuities,

— supplementary payments (e.g. 13th month payment),

— profit-sharing and bonuses paid in cash,

— additional payments based on productivity,

— allowances paid for working in remote locations (regarded as part of the conditions of the job),

— allowances for transport to or from work,

— additional payments made by employers to their employees or former employees and other eligible persons to supplement the sick, disability, maternity leave or survivors’ pay entitlement from social insurance schemes, where such payments cannot be separately and clearly identified as social benefits,

— payments made by employers to an employee in lieu of wages and salaries through a social insurance scheme when that employee is unable to work through sickness, disability or maternity leave where such payment cannot be separately and clearly identified as social benefits,

— cash subsidies received from the employer for dwelling costs.

Gross cash or near-cash employee income does not include:

— payments made by an employer to reimburse work-related expenses (e.g. business travel),

— severance and termination pay to compensate employees for employment ending before the employee has reached the normal retirement age for that job, and redundancy payments (they are included under ‘Unemployment benefits’ (PY090G)),

— allowances for purely work-related expenses such as those for travel and subsistence or for protective clothes,

— lump-sum payments at the normal retirement date (included under ‘Old age benefits’ (PY100G)),

— union strike pay,

— employers’ social insurance contributions.

1.1.2. Gross non-cash employee income (PY020G)

It refers to the non-monetary income components which an employer may provide free of charge or at a reduced price to an employee as part of the employment package. (If any goods or services are provided for both private and work use, then private use, as a proportion of total use, must be estimated and applied to the total value).

Gross non-cash employee income includes:

— a company car and associated costs (e.g. free fuel, car insurance, taxes and duties, as applicable) provided either for private use or for both private and work use (PY021G),

— free or subsidised meals, luncheon vouchers,

— reimbursement or payment of housing-related expenses (e.g. gas, electricity, water, telephone or mobile telephone bills),

— accommodation provided free or at reduced rent to an employee as the household’s main or secondary residence,

— other goods and services provided free or at a reduced price by employers to their employees, if they are a significant component of income at national level or they constitute a significant component of the income of particular groups of households.

The value of goods and services provided free of charge shall be calculated according to their market value. The value of goods and services provided at a reduced price shall be calculated as the difference between the market value and the amount paid by the employee.

Gross non-cash employee income does not include:

— the cost to the employer of providing any of these goods and services if they are necessary to enable employees to do their work,

— accommodation services at a place of work which cannot be used by the households to which the employees belong,

— allowances paid to employees for the purchase of tools, equipment, clothes, etc. needed exclusively or primarily for their work,

— special meals or drinks necessitated by exceptional working conditions,

— any goods or services provided to employees at the place of work or required because of the nature of their work (e.g. a medical examination required for work).

1.1.3. Employers’ social insurance mandatory/legal contributions (PY030G)

Employers’ contributions means payments made, during the income reference period, by employers for the benefit of their employees to insurers (social security funds and private funded schemes). The term covers statutory, conventional or contractual contributions to provide insurance against social risks. Traditionally, they cover statutory old age pension schemes, statutory health insurance and unemployment benefit. Employers’ contributions are paid for most people in employment and can be deducted from the wages they receive, in accordance with published rules.

The variable includes:

— employers’ contributions to government insurance (social security) schemes (including payroll taxes levied for social insurance purposes),

— employers’ contributions to private retirement (pension) plans that are a component of a defined insurance system in a country (e.g. second pension insurance pillar),

— statutory employers’ contributions to other private retirement (pension) plans,

— statutory or conventional employers’ contributions to private health insurance,

— statutory or conventional employers’ contributions to life insurance,

— statutory or conventional employers’ contributions to other employer insurance schemes (e.g. disability).

The variable does not include voluntary contributions by employers.

1.2. Self-employment income

Self-employment income means income received, during the income reference period, by individuals, for themselves or in respect of their family members, as a result of being or having been self-employed. Self-employment refers to jobs in which remuneration depends directly on the profits (or the potential for profits) derived from the goods and services produced (with own consumption considered as part of profits). A self-employed person makes the operational decisions affecting his or her enterprise, or delegates such decisions while retaining responsibility for the welfare of the enterprise. (In this context, ‘enterprise’ includes one-person operations). Remuneration for engaging in a hobby is regarded as an instance of self-employment.

If the income collected or compiled corresponds to a time period earlier than the reference period, basic adjustments shall be applied to update the data to the income reference period.

Self-employment income is broken down into:

(1) Gross cash profits or losses from self-employment (including royalties) (PY050G);

(2) Value of goods produced for own consumption (HY170G).

1.2.1. Gross cash profits or losses from self-employment (including royalties) (PY050G)

That includes:

— net operating profit or loss accruing to working owners of, or partners in, an unincorporated enterprise, less interest on business loans,

— royalties earned on writing, inventions and so on, not included in the profit/loss of unincorporated enterprises,

— rentals from business buildings, vehicles, equipment, etc., not included in the profit/loss of unincorporated enterprises, after deduction of related costs such as interest on associated loans, repairs and maintenance and insurance charges.

It does not include:

— directors’ fees earned by owners of incorporated enterprises (which are included under ‘Gross cash or near cash employee income’ (PY010G)),

— dividends paid by incorporated enterprises (which are included under ‘Interest, dividends, profits from capital investment in an unincorporated business’ (HY090G)),

— profits from capital invested in an unincorporated enterprise in which the person does not work (‘sleeping partners’) (these profits are included under ‘Interest, dividends, profits from capital investment in an unincorporated business’ (HY090G)),

— rent from land and receipts from boarders or lodgers (which are included under ‘Income from rental of a property or land’ (HY040G)),

— rentals from dwellings not included in the profit/loss of unincorporated enterprises (which are included under ‘Income from rental of a property or land’ (HY040G)).

Income from self-employment shall be calculated as:

— market output (gross revenue to turnover, including the value of goods produced by the enterprise but consumed by the self-employed person or his/her household),

— plus the market value of goods and services bought for the unincorporated enterprise but consumed by the entrepreneur and his/her household members,

— plus property income received in connection with financial and other assets belonging to the enterprise,

— minus intermediate consumption (raw material costs, costs of sales, distribution costs, maintenance costs, administrative expenses, etc.),

— minus compensation of employees (wages, salaries and social security contributions for employees),

— minus taxes on production and import taxes,

— minus interest paid on business loans,

— minus rents paid on land and other non-produced tangible assets rented by the enterprise,

— minus consumption of fixed capital,

— plus subsidies.

In practice if the self-employed person or business prepares annual accounts for tax purposes, the gross income profits/losses shall be calculated as net operating profits/losses shown on this tax account for the most recent 12-month period, before deduction of taxes on income and compulsory social insurance contributions.

In the absence of annual accounts, either for tax purposes or as a business account, the alternative approach to measuring self-employment income shall be to collect the amount of money (and goods) drawn out of the business for personal use (for consumption or saving, including the market value of goods produced or purchased by the business but taken for personal use).

1.2.2. Value of goods produced for own consumption (HY170G)

The value of goods produced for own consumption refers to the value of food and beverages produced and consumed within the same household.

The value of goods produced for own consumption shall be calculated as the market value of goods produced deducting any expenses incurred in the production.

The value of food and beverages shall be included if they are a significant component of income at national level or if they constitute a significant component of the income of particular groups of households.

This value does not include:

— the value of household services,

— any production for sale and any withdrawals from a business by a self-employed person (these values are included under ‘Gross income profits or losses from self-employment’ (including royalties) (PY050G)).

1.3. Property income

Property income means income received minus expenses accruing, during the income reference period, by the owner of a financial asset or a tangible non-produced asset (land) in return for providing funds to or putting the tangible non-produced asset at the disposal of another institutional unit.

Property income is broken down into:

(1) Interest, dividends, profits from capital investment in an unincorporated business (HY090G);

(2) Income from rental of a property or land (HY040G);

(3) Pensions received from individual private plans (other than those covered under the European system of integrated social protection statistics (ESSPROS)) (PY080).

1.3.1. Interest, dividends, profits from capital investment in an unincorporated business (HY090G)

Interest (not included in the profit/loss of an unincorporated enterprise), dividends and profits from capital investment in an unincorporated business refer to the amount of interest from assets such as bank accounts, certificates of deposit, bonds, etc., dividends and profits from capital investment in an unincorporated business in which the person does not work, received during the income reference period, minus expenses incurred.

1.3.2. Income from rental of a property or land (HY040G)

Income from rental of a property or land refers to the income received, during the income reference period, from renting a property (for example renting a dwelling not included in the profit/loss of unincorporated enterprises, receipts from boarders or lodgers or rent from land) after deducting costs such as mortgage interest repayments, minor repairs, maintenance, insurance and other charges.

1.3.3. Pensions received from individual private plans (other than those covered under ESSPROS) (PY080).

Regular pensions from private plans (other than those covered under ESSPROS) refer to pensions and annuities received, during the income reference period, in the form of interest or dividend income from individual private insurance plans, i.e. fully organised schemes where contributions are at the contributor’s discretion, independently of his or her employers or government.

The term includes:

— Old age, survivors, sickness, disability and unemployment pensions received as interest or dividends from individual insurance private plans.

It does not include:

— Pensions from mandatory government schemes,

— Pensions from mandatory employer-based schemes.

1.4. Current transfers received

1.4.1. Social benefits

Social benefits (1) are defined as current transfers received by households during the income reference period (2) and intended to relieve them of the financial burden of certain risks or needs, made through collectively organised schemes, or outside such schemes by government units and non-profit institutions serving households.

Social benefits include the value of any social contributions and income tax payable on the benefits by the beneficiary to social insurance schemes or to tax authorities.

To be classed as a social benefit, a transfer must meet one of two criteria:

— coverage is compulsory (under a law, regulation or collective bargaining agreement) for the group in question,

— it is based on the principle of social solidarity (i.e. if it is an insurance-based pension, the premium and entitlements are not proportional to the individual exposure to risk of the people protected).

Social benefits are broken down into:

(1) Family/children-related allowances (HY050G);

(2) Housing allowances (HY070G);

(3) Unemployment benefits (PY090G);

(4) Old-age benefits (PY100G);

(5) Survivors’ benefits (PY110G);

(6) Sickness benefits (PY120G);

(7) Disability benefits (PY130G);

(8) Education-related allowances (PY140G);

(9) Social exclusion allowances/benefits not classified elsewhere (HY060G).

Social benefits are classed as means-tested or non-means-tested benefits, and as contributory or non-contributory.

Contributory schemes are social protection schemes that require the payment of contributions, by the protected persons or by other parties on their behalf, in order to secure individual entitlement to benefits.

Non-contributory schemes are social protection schemes in which eligibility to benefits is not conditional on the payment of contributions by the protected persons or by other parties on their behalf.

Means-tested social benefits are social benefits which are explicitly or implicitly conditional on the beneficiary’s income or wealth, or both, falling below a specified level.

Non means-tested social benefits are social benefits which are not conditional on the beneficiary’s income or wealth, or both, falling below a specified level.

Social benefits do not include:

— benefits paid from schemes into which the recipient has made voluntary payments only, independently of his/her employer or government (which are included under ‘Pensions from individual private plans (other than those covered under ESSPROS)’ (PY080G)).

1.4.1.1. Family/children- related allowance (HY050G)

The family/children function refers to benefits that:

— provide financial support to households for bringing up children,

— provide financial assistance to people supporting relatives other than children.

It includes:

— income maintenance benefit in the event of childbirth: flat-rate or earnings-related payments intended to compensate the parent for loss of earnings due to absence from work in connection with childbirth for the period before or after confinement, or both, or in connection with adoption,

— birth grant: benefits normally paid as a lump sum or by instalments in the case of childbirth or adoption,

— parental leave benefit: benefit paid to either the mother or the father in the event of interruption of work or reduction of working time in order to bring up a child, normally of a young age,

— family or child allowance: periodical payments to a member of a household with dependent children to help with the costs of bringing them up,

— or support paid by government (central or local) if the spouse for some reason does not pay the alimony/or child support. The amount paid by the government should not be recorded in variables HY080 and HY081,

— other cash benefits: benefits paid independently of family allowances to support households and help them meet specific costs, such as costs arising from the specific needs of lone-parent families or families with disabled children. These benefits may be paid periodically or as a lump sum.

The term does not include:

— payments made by employers to an employee in lieu of wages and salaries through a social insurance scheme when the employee is unable to work because of maternity leave, where such payment cannot be separately and clearly identified as social benefits (these payments are included under ‘Gross cash or near-cash employee income’ (PY010G)),

— additional payments made by employers to an employee to supplement the maternity leave pay entitlement from a social insurance schemes, where such payments cannot be separately and clearly identified as social benefits (these payments are included under ‘gross cash or near-cash employee income’ (PY010G)).

1.4.1.2. Housing allowances (HY070G)

The housing function refers to interventions by public authorities to help households meet the cost of housing. An essential criterion for defining the scope of a housing allowance is the existence of a qualifying means-test for the benefit.

Housing allowances include:

— rent benefit: a current means-tested transfer granted by a public authority to tenants, temporarily or on a long-term basis, to help with rent costs,

— benefits payable to owner-occupiers: a means-tested transfer by a public authority to owner-occupiers to alleviate their current housing costs: in practice often to help with paying mortgages or interest, or both.

The term does not include:

— social housing policy organised through the fiscal system (i.e. tax benefits),

— all capital transfers (in particular investment grants).

1.4.1.3. Unemployment benefits (PY090G)

Unemployment benefits refer to benefits that replace, in whole or in part, income lost by a worker through the loss of gainful employment; provide a subsistence (or better) income for individuals entering or re-entering the labour market; compensate for loss of earnings owing to partial unemployment; replace in whole or in part income lost by an older worker who retires from gainful employment before the legal retirement age because of job reductions for economic reasons; contribute to the cost of training or retraining people looking for employment; or help unemployed people meet the cost of travelling or relocating to obtain employment.

The term includes:

— full unemployment benefits: benefits compensating for loss of earnings where a person is capable of working and available for work but is unable to find suitable employment, including persons who have not previously been employed,

— partial unemployment benefits: benefits compensating for the loss of wages or salary as a result of formal short-time working arrangements or intermittent work schedules, or both, irrespective of their cause (business recession or slow-down, breakdown of equipment, climatic conditions, accidents and so on), and where the employer/employee relationship continues,

— early retirement for labour-market reasons: periodic payments to older workers who retire before reaching standard retirement age because of unemployment or job reductions caused by economic measures such as the restructuring of an industrial sector or of a business enterprise. These payments normally cease when the beneficiary becomes entitled to an old-age pension,

— vocational training allowance: payments by social security funds or public agencies to targeted groups of people in the labour force who take part in training schemes intended to develop their potential for employment,

— mobility and resettlement: payments by social security funds or public agencies to unemployed persons to encourage them to move to another locality or change their occupation in order to seek or to obtain work,

— severance and termination payments (benefits compensating employees for employment ending before they reach the normal retirement age for the job concerned),

— redundancy compensation: capital sums paid to employees who have been dismissed through no fault of their own by an enterprise that is ceasing or scaling down its activities,

— other cash benefits: other financial assistance, particularly payments to the long-term unemployed.

It does not include:

— family allowances paid for dependent children (included under ‘Family/children-related allowances’ (HY050G)).

1.4.1.4. Old-age benefits (PY100G)

The old-age function refers to the provision of social protection against the risks linked to old age: loss of income, inadequate income, lack of independence in carrying out daily tasks, reduced participation in social life, and so on.

Old-age benefits cover benefits that provide a replacement income when an elderly person retires from the labour market or that guarantee a certain income when an elderly person has reached a prescribed age.

The term includes:

— old-age pensions: periodic payments intended to maintain the income of the beneficiary after retirement from gainful employment at the standard age or to support old people’s income,

— early old-age pensions: periodic payments intended to maintain the income of beneficiaries who retire before the standard age as defined in the relevant scheme or in the scheme of reference. This may occur with or without a reduction in the normal pension,

— partial retirement pensions: periodic payment of a portion of the full retirement pension to older workers who continue to work but reduce their working hours or whose income from a professional activity is below a defined ceiling,

— care allowances: benefit paid to old people who need frequent or constant assistance to help them meet the additional costs of obtaining care that is required to assist them in old age (other than medical care) when the benefit is not a reimbursement of certified expenditure,

— disability cash benefits paid after the standard retirement age,

— lump-sum payments at the normal retirement date,

— other cash benefits: other periodic and lump-sum benefits paid upon retirement or on account of old age, such as capital sums paid to people who do not fully meet the requirements for a periodic retirement pension, or who were members of a scheme designed to provide only capital sums at retirement.

Old-age benefits do not include:

— family allowances for dependent children (included under ‘Family/children-related allowances’ (HY050G)),

— early retirement benefits paid for labour-market reasons or in the case of reduced capacity to work (they are included under ‘Unemployment benefits’ (PY090G) or ‘Disability benefits’ (PY130G) respectively),

— benefits paid to old people who need frequent or constant assistance to help them meet the extra costs of attendance when the benefits are reimbursed against a certified expenditure.

1.4.1.5. Survivors’ benefits (PY110G)

Survivors’ benefits refer to benefits that provide a temporary or permanent income for people below retirement age after the death of their spouse, partner or next-of-kin, usually when that person was the main breadwinner.

Survivors eligible for benefit may be the spouse or ex-spouse of the deceased person, or his or her children, grandchildren, parents or other relatives. In some cases, the benefit may also be paid to someone outside the family.

A survivors’ benefit is normally granted on the basis of a derived right, that is, a right originally belonging to another person whose death is a condition for granting the benefit.

Survivors’ benefit includes:

— survivors’ pension: periodic payments, even after the standard retirement age, to people whose entitlement derives from their relationship with a deceased person protected by a scheme (widows, widowers, orphans and similar),

— death grant: a single payment to someone whose entitlement derives from their relationship with a deceased person (widows, widowers, orphans and similar),

— other cash benefits: other periodic or lump-sum payments made by virtue of a survivor’s derived right.

It does not include:

— family allowances for dependent children (these benefits are included under ‘Family/children-related allowance’ (HY050G)),

— funeral expenses,

— additional payments made by employers to other eligible persons to supplement the survivors’ benefits pay entitlement from a social insurance scheme, where such payments cannot be separately and clearly identified as social benefits (those payments are included under ‘Gross cash or near-cash employee income’ (PY010G)).

1.4.1.6. Sickness benefits (PY120G)

Sickness benefits refer to cash benefits that replace, in whole or in part, loss of earnings during temporary inability to work owing to sickness or injury.

Sickness benefits include:

— paid sick leave: flat-rate or earnings-related payments intended to compensate the protected person in full or in part for the loss of earnings caused by temporary inability to work owing to sickness or injury. These benefits may be paid by autonomous social protection schemes, but they may also be provided by the employer in the form of the continued payment of wages and salaries during the period of sickness,

— paid leave in the event of the sickness or injury of a dependent child,

— other cash benefits: miscellaneous payments made to protected people in connection with sickness or injury.

The term does not include:

— cash benefits that replace loss of earnings during temporary inability to work as a result of pregnancy (these benefits are included under ‘Family/children-related allowance’ (HY050G)),

— cash benefits that replace loss of earnings during temporary inability to work as a result of disability (these benefits are included under ‘Disability benefits’ (PY130G)),

— payments made by employers to an employee in lieu of wages and salaries through a social insurance scheme when the employee is prevented from working through sickness, where such payment can not be separately and clearly identified as a social benefit (these payments are included under ‘Gross cash or near-cash employee income’ (PY010G)),

— additional payments made by employers to an employee to supplement the sickness leave pay entitlement from a social insurance scheme, where such payments can not be separately and clearly identified as social benefits (those payments are included under ‘Gross cash or near-cash employee income’ (PY010G)).

1.4.1.7. Disability benefits (PY130G)

Disability benefits refer to benefits that provide an income for people below standard retirement age whose ability to work and earn is impaired by a physical or mental disability, beyond a minimum level laid down by legislation.

Disability is the full or partial inability to engage in economic activity or to lead a normal life, owing to a physical or mental impairment that is likely to be either permanent or to persist beyond a minimum prescribed period.

Disability benefits include:

— disability pension: periodic payment intended to maintain or support the income of someone below standard retirement age who suffers from a disability which impairs his or her ability to work or earn beyond a minimum level laid down by legislation,

— early retirement in the event of reduced ability to work: periodic payments to older workers who retire before reaching standard retirement age as a result of reduced ability to work. These pensions normally cease when the beneficiary becomes entitled to an old-age pension,

— care allowance: benefit paid to disabled people below standard retirement age who need frequent or constant assistance to help them meet the extra costs of attendance (other than medical care). The benefit must not be a reimbursement of certified expenditure,

— economic integration of the disabled: allowances paid to disabled people when they undertake work adapted to their condition, normally in a sheltered workshop, or when they undergo vocational training,

— disability benefits to disabled children in their own right, irrespective of dependency,

— other cash benefits: periodic and lump-sum payments not falling under the above headings, such as occasional income support.

Disability benefits do not include:

— benefits provided to replace in whole or in part earnings during temporary incapacity to work due to sickness or injury (these benefits are included under ‘Sickness benefits’ (PY120G)),

— family allowances paid to recipients of disability benefits (these benefits are included under ‘Family/children related allowances’ (HY050G)),

— benefits paid to the surviving dependants of disabled people, such as pensions (these benefits are included under ‘Survivors benefits’ (PY110G)),

— benefits that are a reimbursement of certified expenditure,

— disability cash benefits paid after the standard retirement age (these benefits are included under ‘Old-age benefits’ (PY100G)),

— payments made by employers to an employee or former employee in lieu of wages and salaries through a social insurance scheme when that employee or former employee is unable to work as a result of disability, where such payment cannot be separately and clearly identified as social benefits (these payments are included under ‘Gross cash or near-cash employee income’ (PY010G)),

— additional payments made for employers to an employee or former employee to supplement the disability leave pay entitlement from a social insurance scheme, where such payments cannot be separately and clearly identified as social benefits (those payments are included under ‘Gross cash or near-cash employee income’ (PY010G)).

1.4.1.8. Education- related allowances (PY140G)

Education allowances refer to grants, scholarships and other help for educational purposes received by students.

1.4.1.9. Social exclusion allowances/benefits not classified elsewhere (HY060G)

Social benefits in the function ‘social exclusion not classified elsewhere’ refer to the ‘socially excluded’ or to ‘those at risk of social exclusion’. The general target group includes destitute people, migrants, refugees, drug addicts, alcoholics and victims of criminal violence.

The term encompasses:

— income support: periodic payments to people with insufficient resources. Conditions for entitlement may be related not only to personal resources but also to nationality, residence, age, availability for work and family status. Benefits may be of limited or unlimited duration; they may be paid to the individual or to the family and may be provided by central or local government,

— other cash benefits: support for destitute and vulnerable persons to help alleviate poverty or assist in difficult situations. These benefits may be paid by private non-profit organisations.

1.4.2. Regular inter-household cash transfers received

Regular inter-household cash transfers received refer to regular monetary amounts received, during the income reference period, from other households or persons.

‘Regular’ does not imply precise timing and does not require strong periodicity. It can correspond to one of two different timescales:

— it could refer to an annual amount received every year or over several years,

— alternatively, it could refer to periodic (e.g. monthly) receipts over a short period embedded in the income reference period (e.g. six months).

1.4.2.1 Regular inter-household cash transfers received (HY080G)

Regular inter-household cash transfers received refer to regular payments received, even if only once a year, which are available to finance (regular) consumption expenditure.

The term encompasses:

— compulsory alimony and child support,

— voluntary alimony and child support received on a regular basis,

— regular cash support from persons other than household members,

— regular cash support from households in other countries.

It does not include:

— Free or subsidised housing provided by another household (which is included under the concept of Imputed rent),

— Inheritances and other capital transfers, i.e. transfers received from other households which the household does not consider as being wholly available for consumption within the income reference period,

— Gifts and other large, one-off and unexpected cash flows, such as lump sums to buy a car, a house, or the like, or to be saved for long-term consumption (more than one year ahead),

— Alimonies or support paid by government (central or local) if, for some reason, the spouse does not pay alimony/child support. The amount paid by the government should be recorded in the family allowances (variable HY050).

1.4.2.2 Alimonies (HY081G) received

Alimonies include:

— Compulsory alimony and child support;

— Voluntary alimony and child support received on a regular basis.

Alimonies refer to receipts for children and/or former spouse, which can come from within the same country or from another country.

Alimonies exclude:

— Regular cash support (other than alimonies) from persons other than household members;

— Regular cash support (other than alimonies) from households in other countries;

— Free or subsidised housing provided by another household (which is included under the concept of Imputed rent);

— Gifts and other large, one-off and unexpected cash flows, like lump sums to buy a car or a house, or to be saved for long term consumption (more than one year ahead);

— Alimonies or support paid by government (central or local) if, for some reason, the spouse does not pay the alimony/child support. The amount paid by the government should be recorded in the family allowances (variable HY050).

1.5. Other income received

1.5.1. Income received by people aged under 16 (HY110G)

Income received by people aged under 16 is defined as gross income received by all household members aged under 16 during the income reference period.

It does not include:

— transfers between household members,

— income collected at household level (i.e. variables HY040G, HY050G, HY060G, HY070G, HY080G and HY090G).

1.6. Interest payments

1.6.1. Interest paid on mortgage (HY100G)

Interest paid on mortgage refers to the total gross amount, before deducting any tax credit or tax allowance, of mortgage interest on the main household residence during the income reference period.

It does not include:

— any other mortgage payments, either interest or principal, made at the same time, such as mortgage protection insurance or home and contents insurance,

— payments on re-mortgages to obtain money for housing purposes (e.g. repairs, renovations or maintenance) or for non-housing purposes,

— re-payments of the principal or capital sum.

1.7. Current transfers paid

Current transfers paid are broken down into:

(1) Tax on income and social insurance contributions (HY140G);

(2) Regular taxes on wealth (HY120G);

(3) Employers’ social insurance contributions (PY030G);

(4) Regular inter-household cash transfers paid (HY130G).

1.7.1. Tax on income and social insurance contributions (HY140G)

Tax on income refers to taxes on income, profits and capital gains. They are assessed on the actual or presumed income of individuals, households or tax units. They include taxes assessed on holdings of property, land or real estate, where these holdings are used as a basis for estimating the income of their owners. Taxes related to pensions received from individual private plans (other than those covered under ESSPROS) should also be taken into account.

Taxes on income include:

— taxes on individual, household or tax-unit income (income from employment, property, entrepreneurship, pensions, etc.), including taxes deducted by employers (pay-as-you-earn taxes), other taxes at source and taxes on the income of owners of unincorporated enterprises paid during the income reference period,

— any tax repayment received during the income reference period relating to tax paid on the income received during the income reference period or previous years. This value should be taken into account as a reduction of taxes paid,

— any interest charged on arrears of taxes due and any fines imposed by taxation authorities.

By way of exception, Member States using data from registers, and other Member States for which this is the most suitable approach, may report taxes on ‘income received’ in the income reference year, if it only marginally affects comparability.

Taxes on income do not include:

— fees paid for hunting, shooting and fishing rights.

Social insurance contributions refer to employees’, self-employed, unemployed, retirement and any other contributions (if applicable) paid during the income reference period to either mandatory government or employer-based social insurance schemes (pension, health, etc.).

1.7.2. Regular taxes on wealth (HY120G)

Regular taxes on wealth refer to taxes payable periodically on the ownership or use of land or buildings by owners and current taxes on net wealth and on other assets (jewellery, other external signs of wealth). The regular taxes on wealth to be reported are those paid during the income reference period.

Regular taxes on wealth include:

— regular taxes on the ownership of the household’s main dwelling,

— regular taxes on the ownership of other real estates,

— any interest charged on arrears of taxes due and any fines imposed by taxation authorities,

— property taxes paid directly to the taxation authority by tenants.

Regular taxes on wealth do not include:

— intermittent taxes such as inheritance taxes, death duties or taxes on inter vivos gifts,

— taxes assessed on holdings of property, land or real estate when these holdings are used as a basis for estimating the income of their owners (these taxes are included under ‘Tax on income and social insurance contributions’ (HY140G)),

— taxes on land, buildings or other assets owned or rented by enterprises and used by them for production (these taxes are considered as taxes on production and they are deducted from the market output of selfemployment income to build the component ‘Gross cash profits or losses from self-employment’ (including royalties) (PY050G)).

1.7.3. Regular taxes on the ownership of a household’s main dwelling (HY121G)

This term refers to taxes that are payable periodically on the ownership or use of land or buildings where the dwelling is located by the owners of the dwelling. The regular taxes to be reported are those paid during the income reference period.

1.7.4. Employers’ social insurance contributions (PY030G)

Employers’ social insurance contributions are defined in employee income.

1.7.5. Regular inter-household cash transfers paid

This term refers to regular monetary amounts paid to other households during the income reference period.

‘Regular’ does not refer to precise timing and does not require strong periodicity. It can correspond to two different timescales:

— it could refer to an annual amount received every year or over several years,

— or it could refer to periodic (e.g. monthly) receipts over a short period embedded in the income reference period (e.g. six months).

1.7.5.1 Regular inter-household cash transfers paid (HY130G)

This term refers to regular monetary amounts paid to other households during the income reference period. They should refer to regular payments, even once a year, out of income.

Regular inter-household transfers paid include:

— compulsory alimony and child support,

— voluntary alimony and child support paid on a regular basis,

— regular cash support to persons other than household members,

— regular cash support to households in other countries.

The term does not include capital transfers and money drawn from savings.

1.7.5.2 Alimonies paid (HY131G)

Alimonies refer to payments for children and/or a former spouse, within the same country or to another country.

Alimonies include:

— Compulsory alimony and child support;

— Voluntary alimony and child support paid on a regular basis.

Alimonies exclude:

— Regular cash support (other than alimonies) to persons other than household members;

— Regular cash support (other than alimonies) to households in other countries;

— Capital transfers and money drawn from savings.

2. NET INCOME COMPONENTS

The net income components are derived from the corresponding gross income components after deducting income tax at source and social insurance contributions.

Net components can be provided:

(1) Net of tax on income at source and social contributions;

(2) Net of tax on income at source;

(3) Net of social contributions.

3. TOTAL GROSS AND DISPOSABLE HOUSEHOLD INCOME

3.1. Total gross household income (HY010) is computed as:

The sum for all household members of gross personal income components (gross cash or near-cash employee income (PY010G); company car (PY021G), gross cash profits or losses from self-employment (including royalties) (PY050G); pensions received from individual private plans (other than those covered under ESSPROS) (PY080G), unemployment benefits (PY090G); old-age benefits (PY100G); survivors’ benefits (PY110G); sickness benefits (PY120G); disability benefits (PY130G) and education-related allowances (PY140G)) plus gross income components at household level (income from rental of a property or land (HY040G); family/children-related allowances (HY050G); social exclusion allowances/benefits not classified elsewhere (HY060G); housing allowances (HY070G); regular inter-household cash transfers received (HY080G); interests, dividends, profit from capital investments in unincorporated business (HY090G); and income received by people aged under 16 (HY110G))

3.2. Total disposable household income (HY020) shall be computed as:

The sum for all household members of gross personal income components (gross cash or near-cash employee income (PY010G); company car (PY021G); gross cash profits or losses from self-employment (including royalties) (PY050G); pensions received from individual private plans (other than those covered under ESSPROS) (PY080G), unemployment benefits (PY090G); old-age benefits (PY100G); survivors’ benefits (PY110G); sickness benefits (PY120G); disability benefits (PY130G) and education-related allowances (PY140G)) plus gross income components at household level (income from rental of a property or land (HY040G); family/children-related allowances (HY050G); social exclusion allowances/benefits not classified elsewhere (HY060G); housing allowances (HY070G); regular inter-household cash transfers received (HY080G); interests, dividends, profit from capital investments in unincorporated business (HY090G); and income received by people aged under 16 (HY110G)); minus regular taxes on wealth (HY120G); regular inter-household cash transfer paid (HY130G); and tax on income and social insurance contributions (HY140G)).

That means: HY020 = HY010 – HY120G – HY130G – HY140G.

The variable HY140G includes tax adjustments-repayment/receipt on income, income tax at source and social insurance contributions (if applicable).

3.3. Total disposable household income, before social transfers other than old-age and survivors’ benefits (HY022) is defined as:

Total disposable income (HY020) minus total net transfers, plus old-age benefits (PY100N) and survivors’ benefits (PY110N) (i.e. total disposable income (HY020) minus unemployment benefits (PY090N); sickness benefits (PY120N); disability benefits (PY130N); education-related allowances (PY140N); family/children-related allowances (HY050N); social exclusion allowances/benefits not classified elsewhere (HY060N); and housing allowances (HY070N)).

3.4. Total disposable household income, before social transfers including old-age and survivors’ benefits (HY023), is defined as:

Total disposable income (HY020) minus total net transfers (unemployment benefits (PY090N); old-age benefits (PY100N); survivors’ benefits (PY110N); sickness benefits (PY120N); disability benefits (PY130N); education-related allowances (PY140N); family/children-related allowances (HY050N); social exclusion allowances/benefits not classified elsewhere (HY060N); and housing allowances (HY070N)).

3.5. Equivalised disposable income is defined as:

The household’s total disposable income divided by its ‘equivalent size’.

3.6. Equivalent size

Refers to the OECD modified equivalence scale (which gives a weight of 1,0 to the first adult, 0,5 to other persons aged 14 or over who are living in the household and 0,3 to each child aged under 14).

4. OTHER ITEMS NOT CONSIDERED AS PART OF INCOME

4.1. Contributions to individual private pension plans (PY035G)

Contributions made to individual private pension plans, during the income reference period, refers to the pensions policies taken out by individual households on their own initiative and for their own benefit, independently of their employers or government and outside any social insurance scheme.

These contributions represent the counterpart to pensions from individual private plans (other than those covered under ESSPROS) (PY080G).

The term includes contributions to individual pension plans related to old age, survivors, sickness, disability and unemployment.

(1) The social benefits included in EU-SILC, with the exception of housing benefits, are restricted to cash benefits.

(2) To obtain a more accurate measure of the well-being of the household, the lump-sum benefits received during the income reference period are treated in accordance with Eurostat technical recommendations. In the same way, lump-sum payments received before the income reference period may be taken into account and imputed according to Eurostat recommendations.

ANNEX II

Technical characteristics of variables